Functions of Money - Review

Money or other substance generally accepted as payment for goods and services.

• Measure of value

• Medium of exchange

• Scarcity

• Store of Value

This can be used in place of money.

• Fiat money

• Federal reserve notes

• National currency

• Trading or bartering

What are the 3 functions of money?

• Measure of Gold

• Store of Value

• Medium of Exchange

• Store of Bank Notes

• Measure of Value

A student records her income and spending for past month, she uses the function of money

• Medium of exchange

• Standard of deferred payments

• Unit of account

• Store of value

A saving account in a bank represents the function of money:

• Store of value

• A medium of exchange

• A standard for deferred payments

• A measure of value

Choose the most accurate definition of "money".

• Money is anything generally accepted in payment for goods or services or in the repayment of debts.

• Money is anything recognized in trading and transaction for goods.

• Money is legal currency that is released by banks to satisfy the financial needs of the people.

What function of money the picture represent? 

• Medium of Exchange
• Store of Value
• Unit of Account
• Acceptable 

What function of money the picture represents?

• Medium of Exchange
• Store of Value
• Unit of Account
• Durable 

What function of money the picture represents? 

• Medium of Exchange
• Store of Value
• Unit of Account
• Stable 

Last year, you sold your game system to your friend Jimmy for $125 in cash. You've been saving that money in a shoe box under your bed. You are saving the money to buy a new computer next year. What is the primary function of money exhibited here? 

• Medium of Exchange
• Store of Value
•  Unit of Account
• Stable